Bosch Sells Stake in Denso

Robert Bosch GmbH has sold its entire 5.4% stake in Denso Corp. for $1.4 billion.

The companies, whose relationship began in 1953, plan to continue to collaborate. But Bosch tells Bloomberg News it disposed of the stake, which it describes as non-strategic, to pursue acquisitions and investments in new areas.

Bosch is the world's largest auto supplier. Analysts point out that Denso, now the second-largest supplier, has become a competitor because of the growth of such customers as Honda and Toyota.

Bosch said previously that it wants to diversify into other industries. The company tells Bloomberg, for example, that it will decide by year-end what to do with its unprofitable solar power business.